October 2016 Newsletter

Legislative Update

Draft Bill Details:

Compromises reached on Senate Energy Policy bill will likely be voted on during November’s lame duck session.  The draft bill includes the following requirements:

  • 35% of electrical generation to come from a combination of energy efficiency and renewable energy by 2025 (up from current 1% energy efficiency and 10% renewable requirement that has already been achieved)
  • 15% of electrical generation to come from renewable energy through 2021
  • Financial incentives spending caps at the lower of 20% of net cost reduction for customer (current 25%) or 25% of program spending (current 15%)
  • Creation of new Integrated Resource Plan process requiring utilities to submit multi-year generation and energy efficiency plans to the Michigan Public Service Commission.

Timing & Probability of Passing:

The Republican controlled Senate is likely to vote on this legislation on Nov. 10th, and with the increased mandates included in this draft they may have enough Democratic support to pass the bill. 

If passed, it would move to the Republican-led House where they would have nine scheduled days to approve the legislation before the end of session.  Any bill not approved by the end of session will die and must be reintroduced next year.  The House will likely have a sense of urgency given that all 110 House seats are up for re-election, with potential for a shift in power to become a Democratic-led House next year.

MEECA’s Stance:

MEECA’s official stance remains “neutral” on the proposed bill. 

When the bill was first introduced nearly two years ago we were opposed because it eliminated the renewable portfolio standard and energy optimization programs.  We are pleased to see MEECA’s lobbying for increased energy efficiency standards reflected in the latest draft, but would ultimately like to see higher energy efficiency standards. 

Annual Member Meeting Recap

Thanks to all the members that joined us at our Annual Membership Meeting.  A quick recap of the meeting includes:

The Board of Directors is looking forward continuing MEECA’s work in Lansing and to an increased focus on membership growth and outreach in the coming year.